Route1 Provides Third Quarter 2019 Operations Update
Route1 Inc. (OTCQB: ROIUD and TSXV: ROI) (the "Company" or "Route1"), an advanced North American provider of data-centric business empowerment solutions today provided an operations update after the completion of its third quarter that ended September 30, 2019.
Revenue and Gross Profit
In 000s of CAD dollars Q3 Q2 Q1 Q4 Q3 2019 2019 2019 2018 2018 Revenue Subscription and services 2,136 1,610 1,576 1,628 1,684 Devices and appliances 6,576 1,819 1,883 2,440 13,207 Other 2 1 3 6 4 Total revenue 8,714 3,430 3,462 4,074 14,895 Cost of revenue 5,953 1,672 1,700 2,216 12,311 Gross profit 2,761 1,758 1,762 1,858 2,584 Gross Margin 32 % 51 % 51 % 46 % 17 %
The gross margin in Q3 2019 is directly related to the composition of the revenue for the quarter.
Acquisition of PCS Mobile
On June 28, 2019, Route1 acquired PCS Mobile. PCS Mobile is a computer reseller with expertise in mobile data applications, including wireless products for in-vehicle use. Based in Denver, Colorado, the company sells rugged devices and applications including but not limited to Panasonic Toughbook mobile computers, Xplore and Getac rugged tablets, the Genetec AutoVu(TM) automatic license plate recognition (ALPR) system that automates license plate reading and identification, and accessories from Gamber-Johnson and Havis.
The addition of Genetec's AutoVu(TM) ALPR system enhances Route1's data security and data analytics portfolio of application software owned or resold with application enhancements. The technology makes it easier for law enforcement, and for municipal and commercial organizations to locate vehicles of interest and enforce parking restrictions. Genetec's AutoVu(TM) ALPR system is designed for both fixed and mobile installations.
Route1 acquired PCS Mobile to bring its business model to the western US - geographic expansion, add to the size and quality of the GroupMobile sales team, and leverage PCS Mobile's current and future placement of rugged mobile devices and license plate recognition technology - creating significant opportunities to sell data security and analytics software applications and capabilities to PCS Mobile customers.
As of October 15, 2019, Route1 had completed its integration of PCS Mobile.
Business Development Initiatives
The following initiatives were completed during the third quarter of 2019 and are expected in aggregate to lead to improved sales and gross profit for Route1:
Q3 2019 Financial Results Notification
Route1 will report its third quarter financial results for the period ended September 30, 2019 before the markets open on Tuesday, November 26, 2019.
Annual General and Special Meeting Notification
Route1 will hold its annual general and special meeting ("AGM") at the offices of Fasken Martineau DuMoulin LLP, 333 Bay Street, Suite 2400, Toronto, Ontario on December 2, 2019 at 9 a.m. (Toronto time) for the following purposes:
There will not be a management presentation at the end of the AGM.
About Route1 Inc.
Route1 Inc., also operating under the tradenames GroupMobile and PCS Mobile is an advanced North American technology company that empowers their clients with data-centric solutions necessary to drive greater profitability, improve operational efficiency and gain sustainable competitive advantages, while always emphasizing a strong cybersecurity and information assurance posture. Route1 delivers exceptional client outcomes through real-time secure delivery of actionable intelligence to decision makers, whether it be in a manufacturing plant, in-theater or in a university parking lot. Route1 is listed on the OTCQB in the United States under the symbol ROIUD and in Canada on the TSX Venture Exchange under the symbol ROI. For more information, visit: www.route1.com.
Route1 Inc., also operating under the tradenames GroupMobile and PCS Mobile, is an advanced North American technology company that empowers their clients with data-centric solutions that drive greater profitability, improve operational efficiency, enhanced mission outcomes and gain sustainable competitive advantages - all while emphasizing strong information security. Route1 delivers exceptional client outcomes through real-time, secure delivery of actionable intelligence to decision makers, whether it be in a manufacturing plant, in-theater, or in a university parking lot. Route1 is listed on the OTCQB in the United States under the symbol ROIUD and in Canada on the TSX Venture Exchange under the symbol ROI. For more information, visit www.route1.com.
For More Information, Contact:
Chief Executive Officer
+1 416 509 1496
This news release, required by applicable Canadian laws, does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
(C) 2019 Route1 Inc. All rights reserved. No part of this document may be reproduced, transmitted or otherwise used in whole or in part or by any means without prior written consent of Route1 Inc. See https://www.route1.com/terms-of-use/ for notice of Route1's intellectual property.
This news release may contain statements that are not current or historical factual statements that may constitute forward-looking statements. These statements are based on certain factors and assumptions, including, price and liquidity of the common shares, expected financial performance, business prospects, technological developments, and development activities and like matters. While Route1 considers these factors and assumptions to be reasonable, based on information currently available, they may prove to be incorrect. These statements involve risks and uncertainties, including but not limited to the risk factors described in reporting documents filed by the Company. Actual results could differ materially from those projected as a result of these and other risks and should not be relied upon as a prediction of future events. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, except as required by law. Estimates used in this presentation are from Company sources. Past performance is not guarantee of future performance and readers should not rely on historical results as an indication of future results.